There are hundreds if not thousands of different cashback credit card options these days. You have both your basic cards and specialty cards to work with.

What’s a specialty cashback credit card, you may ask? I’ll get to that in a minute. Many of you may not realize that cashback credit cards aren’t as simple as earning a certain percentage of your spending back. There’s a bit more to it than that.

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Let’s get right into the difference between a basic cashback credit card and specialty cards, shall we?

Basic Cashback Credit Cards

A basic cashback credit card gives you a specific percentage of cashback for any purchases made with the card. Typically, the percentage will be between 1-1.5%.

These cards usually don’t have a high minimum spend requirement either. You may only need to spend four or five hundred dollars a month to acquire the cashback rewards. Of course, this will vary depending on the card provider. However, most basic cards are similar.

Specialty Cashback Credit Cards

Specialty cashback credit cards are a little bit different. Instead of having a set rate for every purchase, you have a higher percentage for certain types of purchases. For example, a cashback credit card that is linked with your favorite grocery store may give you anywhere up to 6% cashback rewards.

Obviously, 6% is much higher than 1.5%. The reason for the higher rate is both because you must use the card in the affiliated stores, and also because the minimum spend requirement is likely to be higher. You may need to spend $1,500 or even $2,000 a month in that store in order to earn the cashback rewards. The minimum spend requirement will also vary depending on the type of card you choose. Some cards provide a slightly lower percentage which doesn’t require quite as much spending each month.

Make sure to pay close attention to the different affiliated stores and requirements for each of these cashback credit cards. Choose the one(s) which fit your needs best. If you shop at two or three shops far more often than anywhere else, consider getting different specialty cards for each of those places!

Also find out about cashback on groceries credit card.

Happy spending, everyone!